St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-12-31

and states that the obligation requiring
assessments upon stockholders of not
less than S. per share at six months
intervals, until the par value
should be fully paid, has not
been kept by the road, and that the
obligation 20 keep telegraph line in
repair and use has been turned over to
the Western Union Telegraph company;
that the refusal of the Union Pacific to
prorate through business east and west
was in violation of its obligation.
FOUR BILLS.
With the majority report of the COM
mission are submitted four bills for the
consideration of congress. These bills
quirements in all important par
ticulars, except that, on non-accept-
ance of the prescribed terms, the
Central Pacific and the Sioux City Pa
cific are required to pay to the govern
ment all the net earnings of their subsi
died lines, and the Central branch
of the Union Pacific - per cent as
against only 40 per cent for the
Union Pacific. The bill to adjust the
Indebtedness of the Union Pacific,
which is sample of the others, pro-
videS that the secretary of the treasury
is to ascertain the amount of the re-
spective indebtedness of the Union Pa
cific Railroad company and the Kansas
Pacific Railroad company, to which
the subsidy bonds of the United
States were advanced in aid of
the construction OF their respec-
July, 1888, upon the same principle as
if the whole sum of the bonds advanced
to said companies and the interest paid,
and to be paid, by the United States
thereon, were to be paid to the United
States in cash on said day: and the said
sum shall be computed and aScertained
as follows:
First-Add to the principal of the said
bonds the interest paid and to be paid
thereon by the United States up to the
maturity thereof.
Second-Deduct from this sum the
amount of the interest which shall at
the time of such computation have reim-
burSed to the United States by the pay
ments and credits which appear in the
bond and interest account of the said
companies with the United States:
Third-Compute the worth of the
amount so found as of the 1St of July,
1888, on the basis that money is worth
per cent per annum, by discOunting the
said amount at s per cent compounded
the date of average maturity of the said
bonds and the first day of July, 1888.
Section provides thatna mortgage
shall be executed by the railroad to
trustees appointed by the government
and that all its property be also turned
over to these trustees.
Sec. 3. One OF the trustees of the
said mortgage hereby authorized shall
be appointed by the Union Pacific Rail-
way company, subject, however, to the
written approval of the president of the
United States. They shall be appointed
by the president of the United States,
who may, in his discretion, appoint the
same person trustee of other mortgages
of any roads that have received
government aid bonds, and which may
be executed to secure any debt to the
United States. He shall receive NOM
fixed and paid by the secretary of the
treasury.
Section authorizes the Union Pacific
to issue bonds in the sum of 600 each
to cover the amount owed the govern
ment, due fifty years hence, and to bear
interest at the rate of 3 per cent.
Section 5 provides that on default,
continuing for six months. in the regu-
lar payment of interest, the whole debt
shall mature at the option of the gov
eminent. Section provides that from
July l, 1889, one-half of one per cent be
set apart as sinking fund until 1889.
when the amount shall be one per cent
of all the outstanding bonds.
The bill further suggests that the eX-
iSting statutory lien of the government
remain in force; that no dividends are
to be paid unless the dividend
declared has been earned dur
ing the year previous; that
nothing in this bill shall in any way af
feet the relations with its railroads and
telegraph lines, and that the act shall
take effect upon the acceptance by the
board OF directors of the railway.